Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Warning – It isnt just CDS effected by Illegal Builds › Reply To: Warning – It isnt just CDS effected by Illegal Builds
Drakan – there is one grey area that I am not absolutely clear on, it’s something pertinent to a development I know….
I’ve read that:
Utility companies are not permitted to supply homes before the Licence of First Occupation has been granted by the Town Hall.
Homes that have been hooked up to public utilities including water and electricity without this LFO is a clear violation of Spanish law.
Despite this law, we all know that utility connections are going on with new developments without LFO’s.
Town halls are obliged to issue the ‘cédula’ (LFO) before they allow homes to be occupied. It is this issue that prompts my question.
Which is: If someone moves into their property (even though it has not been certified as ‘legally habitable’ by the Town Hall i.e. no LFO), where does the occupier legally stand if the developer goes bankrupt.?
If the developer built the development using bank loans, which they nearly all do, who would have the legal right over the property?
The bank because it was its collateral for the loan, or the purchaser because despite no LFO, he managed to register it in his name?
And doesn’t this make a nice change from a question about Bank Guarantees 😉